i have question on softmod any wii please

hello,
after i did step one now i am going to step 2 and 3,
i have some question before

what's mean that phrase technicly and how i know my cios? :

WARNING: This is a version patched System Menu, running on a version patched
cios60. NEVER replace cios60-v54321 with ios60-6174. Doing so will
brick your wii if you update from Nintendo. Never update from Nintendo, don't MUCK up cios60-v54321. You have
been warned.

And do i update my ios?

and what mean by :

This installs a version patched SM, which I recommend. If this bothers you, don't do it.

do i do it?

and on step 3 the apps like usb loader gx loader are on the sd or the wii itself i mean if i remove the sd these extra apps will not load?
and beside the usbloadergx there is a guide on download there is for diffrent cios again how i know my cios